NEW YORK, Oct. 12 (Xinhua) -- U.S. stocks rebounded on Friday as the fears over rising interest rates eased and earnings reports turned out to be better than expected.
Shortly after the opening bell, the Dow Jones Industrial Average gained 390.76 points, or 1.56 percent, at 25,443.59. The S&P 500 was up 43.71 points, or 1.60 percent, at 2,772.08. The Nasdaq Composite Index rose 165.54 points, or 2.26 percent, to 7,494.60.
On the earnings front, J. P. Morgan Chase topped analysts' expectations for third-quarter earnings and revenue on Friday as better-than-expected retail banking results offset the weakness in bond trading.
The largest U.S. bank by assets reported that its revenue rose 5 percent to 27.82 billion U.S. dollars and earnings per share rose 33 percent to 2.34 dollars.
Shares of the bank rose 1.33 percent to trade at 109.57 dollars in early trading.
Wells Fargo reported revenue of 21.9 billion dollars and diluted earnings per share of 1.13 dollars, both beating expectations. Shares of the bank rose 0.37 percent.
Citigroup also reported better-than-expected earnings but its revenue was lower than forecast. In the third quarter, the company's earnings per share reached 1.73 dollars, with its revenue at 18.39 billion dollars.
Shares of Citigroup rose 1.89 percent in early trading.
Investors are expecting another strong earnings season.
On the economic front, the University of Michigan's preliminary consumer sentiment gauge for October was 99.0, lower than the expected reading of 100.4.
Stocks plunged in the previous two sessions, suffering steep losses sparked by the recent interest rate hike and a sell-off in tech shares in the previous session.
All three major indices, the Dow, the S&P 500 and the Nasdaq, had lost more than 5 percent decline over the past two days. Enditem
